The largest German industrial sector is in crisis. The employers’ association announces job cuts and calls for far-reaching reforms for the economy – based on a controversial model.
According to employers, tens of thousands of jobs could be lost in the German metal and electrical industry in the next few years. “I expect that we could lose 250,000 to 300,000 jobs in the metal and electrical industry in the next five years,” said Gesamtmetall President Stefan Wolf to the newspapers of the Funke media group. According to the association, around four million people are still employed in Germany’s largest industrial sector.
Wolf said that in the next few years the baby boomers will retire. Companies could therefore make job cuts “as socially acceptable as possible”. At the same time there is a shortage of workers. “In this respect, we will have to work more despite the jobs being lost.” Wolf demanded more flexibility in working hours.
“We are in a structural crisis”
Collective bargaining is underway in the metal and electrical industries. Warning strikes can be expected from the end of October. In May, Wolf said in an interview given the difficult economic situation that the number of jobs in the industry could fall by 40,000 to 50,000 in the next three to four years.
Wolf now told the newspapers of the Funke media group: “We are in a structural crisis.” Energy prices, corporate taxes and social security contributions as well as bureaucratic burdens are too high.
The last good structural reform that was done was Agenda 2010, said Wolf. The controversial reform around 20 years ago was associated with cuts in the social system. Wolf spoke of a policy for people and jobs. He said: “Now we urgently need an Agenda 2040.”
Source: Stern
